What the Automobile Industry Should Know About Decision Making

Topics: Automobile, Decision making, Risk Pages: 2 (599 words) Published: November 17, 2010
“What the Automobile Industry Should Know About Decision Making”

Does your industry represent routine problem solving, limited problem solving, or extensive problem solving? The automobile industry represents extensive problem solving. This is because automobiles are a very expensive purchase, so it is important to conduct an extensive search. The decision is high risk and requires high involvement and a lot of research.

Does that depend on the consumer and his or her interests?
Almost always, purchasing a car will be extended problem solving, regardless of the consumers interests. It is a lot different then purchasing something minimal like a candy bar. A car is a large investment therefore it will almost always be extemded.

For your industry, describe information search, perceived risk, evaluation of alternatives, and product choice. Information search is the process by which we survey the environment for appropriate data to make a reasonable decision. In looking for a new car, one will do a lot of research in finding the best car. This will probably include the internet, word of mouth, car reviews, different specs, etc. Purchasing decisions, like buying a car, that involve extensive search also entail perceived risk. Cars have a lot of physical risk and monetary risk. How long will the car run for and hold its value? American consumers looked at more than 8 models on average before they decided which car they wanted. Consumers use many different factors to evaluate different cars. Some examples include gas mileage, price, seating capacity, interior, and engine size. All cars will get you from point A to point B, but it is the different specifications and designs that consumers use to evaluate different alternatives. Product choice in the automobile industry can also be different depending on the consumer. Some choose the model that is priced the highest because they perceive it to be better. Most will test drive their top choices and then decide...
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